(1) Any person or entity providing closing and settlement services for a real estate transaction and to whom a payoff statement is addressed shall be entitled to reasonably rely on the amounts that are set forth in such payoff statement for the time frame set forth therein and shall not be liable to the creditor or holder of the indebtedness or its agent for any omitted amounts, unless a written amendment is received by such person or entity prior to the closing of the transaction. Upon payment to the creditor or holder of the amounts stated in the written payoff statement, as may be amended, such creditor or holder shall be required to comply with the release provisions of section 38-35-124.
(2) Any creditor or holder of the indebtedness who fails to comply with the release provisions of section 38-35-124 as required by subsection (1) of this section shall be liable to those persons or entities to whom the written payoff statement was addressed for any actual economic loss suffered by such persons or entities, including reasonable attorney fees and costs in enforcing the provisions of this section.
(3) Notwithstanding the provisions of this section, in the event of an error in the written payoff statement provided by a creditor or holder of the indebtedness or its agent, the creditor shall retain any remedies, legal or equitable, to collect directly against the obligor any unsecured additional amounts determined to be outstanding.
Source: L. 2002: Entire section added, p. 1332, § 3, effective July 1.
Notes of Decisions
Fid. Nat'l Title Co. v. First Am. Title Ins. Co., 310 P.3d 272 (Colo. Ct. App. 2013).
· cites it 3× “5 Defense {31 Agent maintains that, under section 38-35-124.5, the letter it received from Brown was a "payoff statement" on which Agent was entitled to rely, and therefore it is not liable to Underwriter for any error.”
Green Tree Servicing, LLC v. U.S. Bank Nat'l Ass'n, 192 P.3d 1014 (Colo. Ct. App. 2007).
· cites it 4× “Bank to release its deed of trust constituted a violation of § 838-35-124 or § 38-35-124.5, there is nothing in either statute stating that in the event of a violation of their terms the deed of trust is null and void or that the foreclosure of real property subject to the deed…”
Roman v. Morconava Grp., LLC (D. Colo. 2023).
· cites it 3× “debt or an unliquidated, determinable amount of money due to the person bringing the action, all actions for the enforcement of rights set forth in any instrument securing the payment of or evidencing any debt, and all actions of replevin to recover the possession of personal…”
— Colo. Rev. Stat. § 38-35-124.5(1) — 1 case
Fid. Nat'l Title Co. v. First Am. Title Ins. Co., 310 P.3d 272 (Colo. Ct. App. 2013).
“5 Defense {31 Agent maintains that, under section 38-35-124.5, the letter it received from Brown was a "payoff statement" on which Agent was entitled to rely, and therefore it is not liable to Underwriter for any error.”
— Colo. Rev. Stat. § 38-35-124.5(3) — 1 case
Roman v. Morconava Grp., LLC (D. Colo. 2023).
“debt or an unliquidated, determinable amount of money due to the person bringing the action, all actions for the enforcement of rights set forth in any instrument securing the payment of or evidencing any debt, and all actions of replevin to recover the possession of personal…”
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